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Ukraine offsets grain corridor loss and boosts Black Sea exports

Ukraine offsets grain corridor loss and boosts Black Sea exports Photo: Ukrainian farmers have fully compensated for the loss of the grain corridor (Getty Images)
Author: Liliana Oleniak

The termination of the grain corridor in July 2023 will be fully compensated by food supplies via a new sea route that opened in August. Further expansion of the logistics capacity of this route is not ruled out, according to the National Bank of Ukraine's Inflation Report (January 2024).

"The average monthly volume of goods delivered through the new sea corridor will be about 7 million tons. The capacity will be sufficient not only for the export of 2023-2024 harvests but also for increasing exports of mining and metals products," the review says.

According to the NBU, the continuation of positive trends will ensure higher export volumes and further improvement of the effectiveness of currency supervision measures will ensure timely receipt of foreign exchange earnings. This will contribute to a faster economic recovery, strengthen the NBU's ability to maintain exchange rate stability and accelerate the process of easing currency restrictions.

However, Russia's shelling of port infrastructure could harm shipping. This will complicate the export of export products and lead to a decrease in foreign exchange earnings and, accordingly, a deterioration in the financial condition of exporters, the NBU notes.

Ukrainian corridor

After Russia withdrew from the grain deal in July last year, a special maritime corridor was created, in particular, to protect grain coming from ports. According to the Ukrainian Navy, the corridor had reached its capacity before Russia's full-scale invasion.

According to Kyrylo Budanov, the head of the Defense Intelligence of Ukraine, constant attacks on the Russian fleet allowed them to be pushed to the southeastern part and resume shipping. The northern part is controlled by Ukraine.